CRH posts 2% rise in EBITDA for 9M20

CRH has reported a three per cent like-for-like (LfL) decrease in its sales to US$20.6bn for the nine-month period to the end of September 2020, maintaining the level of sales decline reported at the half-year stage.

Despite the lower sales, EBITDA for the period was US$3.4bn, up two per cent on a LfL basis. This reflected a continued focus on cost rationalisation and mitigating actions to minimise the financial impacts of lower sales caused by the pandemic. The group reported US$65m of non-recurring COVID-19 related restructuring items in the 1H20 and expects to incur similar costs in the second half.

"As we continue to navigate these challenging times, the health and safety of our people remains our number one priority and is a core focus in our business each and every day. Markets continue to be impacted by the global pandemic and while we have seen some lower activity levels, I am pleased to report further improvement in trading performance, with an advance in both profitability and margins. The outlook for the coming months remains uncertain and visibility is limited, however, I am confident that we are well positioned for the challenges and opportunities that lie ahead," said Albert Manifold, CEO.

Nine-month sales for its Americas Materials segment fell four per cent LfL, while EBITDA advanced nine per cent on the back of solid price progression, cost control and lower energy costs. The region’s cement volumes were down one per cent on a like-for-like basis, but prices rose four per cent.

Europe Materials saw LfL sales decline seven per cent from 9M19, however, this was an improvement on the first half of 2020. EBITDA also decreased 14 per cent in the first nine months of the current year.

"Based on the underlying trends in our businesses and recognising continued uncertainty across our markets, we expect full-year EBITDA to be in excess of US$4.4bn for 2020. For now, there is limited visibility into 2021, however the longer-term prospects for CRH remain positive, given our significant financial strength and operational resilience together with a portfolio of high-quality assets in attractive markets," said the company in its November trading update.